If you have bad or even no credit, your insurer will raise your rates.

Having bad credit or none at all makes it seem like you’re not good with money, so there is a risk that you won’t pay your bills.

Your car insurance rates will definitely increase if you get into a car accident.

However, many insurers forgive your first offense without affecting your insurance rates. Car insurance companies can take up to five years to forgive a driving violation.

But if you make multiple claims, your insurance rates will go up because your insurer is losing money.

One reason that may not be obvious is that insurance companies have to raise their rates to keep up with the economy. Insurers do their best to keep their prices as low as possible, but they have to make enough money to stay in business.

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Prevention Before Insurance Rates Rise

If you are looking for a new car, consider how it might affect your insurance. Weigh the pros and cons of having the car you want and what it will do to your insurance before deciding which car to buy.

The same is true if you’re moving. If you have the option, research your prospective neighborhoods.

Choose wisely by finding out how neighborhoods will affect your car insurance ahead of time and include this factor in your decision-making process.

Maintain a clean driving record, follow all the rules of the road, and don’t cause any accidents.If you do get in an accident and there is minor damage, consider paying for it out of pocket.

By not making a claim, you can prevent your car insurance rates from going up.

Improve your credit score, or maintain a good one. If you improve a bad credit score, your insurance company could lower your rates.

Continually look for discounts. Insurance companies are constantly developing new discounts in an effort to drum up business. Make sure you take advantage of all available discounts.

You should also get quotes from other companies every few years. Your insurer might have offered the lowest rate when you first bought your policy, but that could have changed.

If you find an insurance company that offers the same type of policy you have for a lower price, ask your current insurer to match it. If they won’t, switch companies.

Bringing it Down Again

If your rates increase too much, tell your insurance company that you’ll go to another insurer unless they return you to your previous rates.

Most of the time agents are allowed to offer better deals that they won’t tell you about until necessary, and many want to keep you happy rather than lose your business.

If your rates went up because you were in an accident and it wasn’t your fault, talk to your agent.

If you caused the accident, the most you can do is keep out of trouble for a few years and hope your insurance rates go down in time.

In addition to helping to prevent insurance rates from going up, finding discounts that apply to you can help lower your rates after they are raised.

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